Friday, March 25, 2011

Fitch U.S. CMBS Newsletter: Mood Among Market Players Mixed

NEW YORK, NY--The  mood  among  U.S.  CMBS lenders and third-party loan sellers is fairly optimistic,  while servicers and traditional b-piece buyers are maintaining a  more  guarded view of the sector's health, according to Fitch Ratings in its  roundup  of  last  week's  Distressed Debt Summit. The full roundup is featured in this week’s U.S. CMBS newsletter.

Most agreed that commercial real estate values are on the upswing. However, the  improvements  are  being  driven  more by compressed cap rates than by
increasing  cash flow.  Additionally, servicers are increasingly turning to
loan modifications with increased success.

In contrast, much of the market pessimism centers on the amount of loans in
special  servicing. While new transfers into special servicing have slowed,
the  inventory  of  assets  to  work  through is large. Approximately $89.7
billion  of  loans  are  in  special  servicing  as  year end-2010 (YE’10),
compared to $73.9 billion at YE’09.

New  issuance is seen as a positive sign to help temper the volume of loans
entering  special  servicing.  However,  the  burgeoning  trend  is also of
concern  among  investors  who  are wary of competitive pressures weakening
underwriting standards.

Additional  information  is available in Fitch's weekly e-newsletter, 'U.S.
CMBS  Market  Trends',  which  also  contains  recent rating actions and an
overview  of  newly  released  CMBS  research, including Fitch presales and
Focus  reports.  The  link  below enables market participants to sign up to
receive future issues of the E-newsletter:



Mary MacNeill
Managing Director
Fitch Inc., 1 State Street Plaza, New York, NY 10004

Lindsay Weichert

Media   Relations:   Sandro   Scenga,   New  York,  Tel:  +1  212-908-0278:

Additional information is available at

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